The system will be powered by Android operating system, according to re/code. That makes sense. Amazon's Kindle Fire tablets use a version of Android as well. Supposedly, Amazon was going to allow third party apps in addition to its own services.

The product's launch has been talked about -- and delayed -- for some time. It had been expected to appear in time for the holidays. No one is exactly sure why it was delayed. There was speculation in December there were problems in performance. Plus, Amazon was concerned about how to differentiate the box from Roku, Apple and Google's Chromecast.

That's the rub. It could be used to promote Amazon's Amazon Prime Service. The Motley Fool suggested the box could also be offered free to Amazon Prime customers and soften the blow of an expected price increase. Amazon may boost the annual fee from $79 to $119. Amazon Prime gives the customer includes free shipping among other benefits. The shipping feature is proving too costly.

The stock is down nearly 11% from its all-time high of $408.06. The decline came after investors were underwhelmed by the online retailer's fourth-quarter results. The shares were up $4.18, or 1.2%, to $362.50 early Wednesday afternoon.